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Banks Impose Strict Measures to Prevent Private Equity Poaching of Junior Talent
22 Jul
Summary
- Citi, Goldman Sachs, and JPMorgan have implemented policies to protect against private equity firms poaching junior bankers
- Banks require junior bankers to disclose any future employment offers
- Private equity firms like Apollo, General Atlantic, and TPG have delayed interviews for 2027 candidates
In a move to protect their junior banking talent, major financial institutions like Citi, Goldman Sachs, and JPMorgan have recently implemented new policies to curb the practice of private equity firms poaching young bankers.
Citi, the latest bank to take action, has sent a memo to its first-year investment bankers, requiring them to disclose any future employment offers they may have accepted. The bank stated that each analyst's situation will be assessed on a "case-by-case basis" and that the measure is intended to "foster a fair and transparent environment."
Similarly, Goldman Sachs has taken steps to deter its young bankers from jumping ship. Last week, the bank offered "select" junior employees an internal private equity career path, and earlier this month, it asked its young bankers to sign documents disclosing any future employment they may have agreed to.
These measures come after JPMorgan announced in June that it would fire junior bankers who had accepted future-dated job offers from other firms. JPMorgan's CEO, Jamie Dimon, has publicly condemned the "unethical" practice of private equity poaching.
In response, several private equity giants, including Apollo, General Atlantic, and TPG, have announced they will delay interviews for 2027 candidates until next year, an unprecedented move in the highly competitive "on-cycle" recruiting process.
